Amid reports that the Revenue will soon start a concerted campaign targeting the tax affairs of self-employed barristers, Ashley Hayman considers what the Revenue will be looking for.
Giving evidence to the Public Accounts Committee in 2008, Dave Hartnett, Acting Chairman of Her Majesty’s Revenue and Customs (“the Revenue”), reported that there had been 57 barristers who were in the “hidden economy” and not paying any tax at all. Maybe such cases were deliberate; maybe they were due to astonishing oversight. But if you happen to be in the hidden economy you need to take urgent advice about putting your affairs in order before the Revenue launch a tax enquiry into you. Even the vast majority who do submit accounts and tax returns to the Revenue are not immune from challenge. The Revenue have recently shown a close interest in the tax affairs of a number of respectable professionals (including, for example, doctors and vets), and there is a specialist team at the Euston Tower tax office charged with enquiring into the affairs of barristers.